What type of budget involves placing money into envelopes?

English

2 answers:

Nadusha1986 [10]4 years ago

8 0

The correct answer is B. Physical budget

Explanation:

In finance, a budget refers to the amount of money you plan to spend during a certain time or for a specific purpose. Also, budgets can be general or specific, for example, if you are organizing a party you might set a financial plan or budget that includes multiple elements such as drinks, food, music, entertainment, etc. Besides this, there are many ways of creating a budget as you can just plan it in your mind (mental budget), write it down in a paper (written budget), use a software (software budget) or take the money you are going to spend and separate this physically by putting it in different drawers, boxes or envelopes (Physical budget). This means in the type of budget that involves placing money into envelopes is a physical budget.

omeli [17]4 years ago

7 0

The correct answer is B.

A budget is an estimate of income and expenditure for a set period of time.

It is usually based on future plans or objectives.

A mental budget is done in a person's head using no other help than his brain. The disadvantage of this type of budget is its low reliability, as the estimate may simply be forgotten one day.

A physical budget means putting some money aside in physical gadgets as a way of saving for the future or hard times. It was used before banking was invented and it still practiced all over the world in underdeveloped countries.

Written budget is done on a piece of paper where all the income and expenditures are compared and balanced. This a very reliable way of creating a budget but it requires some knowledge about financial matters.

Software budget means using a software program to help somebody create a budget. This is the most budget making option used today as the user is provided with all the necessary tools, and all he needs to do is to fill in some numbers.

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